BlackBerry reportedly in talks with Cisco, Google, and SAP to sell off portfolio

It's only been less than two weeks since BlackBerry signed a letter of intent with Fairfax Financial to be sold for $4.7 billion. As part of the agreement, BlackBerry would be free during the due diligence period to discuss terms with other potential buyers if and when they arise.

An article appearing today in Reuters claims that BlackBerry is doing just that as sources say they are in talks with Cisco Systems, Google Inc and SAP to sell off parts of itself including their secure server network and patent portfolio.

While this news comes as a bit of a surprise, it could all be part of the strategic alternatives BlackBerry were exploring as they weigh their options. Furthermore, BlackBerry has also expressed interest in potential deals with Intel Corp, LG and Samsung, and are currently awaiting a response by early next week.

You can read the full text below and we'll be sure to keep you posted as these turn of events develop.

(Reuters) - BlackBerry Ltd, on the block as its smartphone business struggles, is in talks with Cisco Systems, Google Inc and SAP about selling them all or parts of itself, several sources close to the matter said.

Such a deal would be an alternative to the preliminary agreement reached weeks ago with a group, led by BlackBerry's biggest shareholder, Fairfax Financial Holdings, to take the company private for about $4.7 billion, a bid which has faced some skepticism because of financing questions.

The company, based in Waterloo, Ontario, has asked for preliminary expressions of interest from potential strategic buyers, which also include Intel Corp and Asian companies LG and Samsung, by early next week.

It is unclear which parties will bid, if any. But the potential technology buyers have been especially interested in BlackBerry's secure server network and patent portfolio, although doubts about the assets' value remain an issue, the sources said.

Google, Intel, Cisco, LG and SAP declined to comment. Samsung was not immediately available for comment.

Possible bidders are proceeding with caution given the uncertainty around BlackBerry, which last month reported a quarterly loss of nearly $1 billion after taking a writedown on unsold Z10 phones.

The value of BlackBerry's patent portfolio and licensing agreements is likely to halve in the next 18 months, a company filing from this week shows, potentially limiting its attractiveness.

According to analysts, BlackBerry's assets include a shrinking yet well-regarded services business that powers its security-focused messaging system, worth $3 billion to $4.5 billion; a collection of patents that could be worth $2 billion to $3 billion; and $3.1 billion in cash and investments.

Adding to the company's woes, it's likely to burn through almost $2 billion of its cash pile in the next year and a half, Bernstein analyst Pierre Ferragu wrote on Thursday after studying the filing.

Private equity firms that have showed interest in BlackBerry - which also include Cerberus Capital Management - have asked the company and its advisers to provide additional financial details about its various business segments, two of the sources said. That process could take another few weeks, as BlackBerry focuses on taking bids from industry peers, the sources said.

In August, the company said it was weighing its options, which could include an outright sale, after Reuters first reported BlackBerry's board was warming up to the possibility of going private.

At that time, it formed a five-member special committee chaired by board director Timothy Dattels. Other members include Chairman Barbara Stymiest, Chief Executive Thorsten Heins, Richard Lynch and Bert Nordberg.

A spokesman for BlackBerry said in an emailed statement to Reuters: "The special committee, with the assistance of BlackBerry's independent financial and legal advisors, is conducting a robust and thorough review of strategic alternatives." He declined to provide further comment.

Blackberry does not an OS hacker proof; BBRY needs a BOD and CEO crook proof. If all the crooks that are now (including, Mr. HT) disappear, then this company may have a chance. HT, get your 50M and go away. You are a disgrace for this company.

Samsung wants to distance itself from Google, so it's feasible that Google wants to buy BlackBerry so Samsung cannot. I could see Samsung actually improving qnx, getting android to work well, and make the app store work on bb10... after paying royalties to Google, Samsung would be on its own feet with an os that works well, and would rapidly lose dependence on Google. The best way for Google to thwart this, is to intercept.

Google is a search/data handling business with advertising revenues and BBRY is predominantly a phone maker with associated software so unless Google are either moving more towards hardware, or BBRY have unspoken patents for search/data handling, I can't see why they would be interested?

The best thing would be a model were it's Enterprise Focus, phones would not longer be purchased through retail outlets, it would be like Dell where you can purchase your product direct from Blackberry. This would save loads of overhead, with a centralizing everything from one center. The good thing would be all phones would be unlocked, there would be no carrier's logo's on any phones, and all critical OS updates would be handled and distributed from Blackberry.
That is how I would do it, the appeal would be unlocked phones,

I have never seen a group of incompetent corporate managers besides HP. This is unbelievable. They botched BB10 launch in the states. Yesterday, while at a party, a friend asked me what phone I used and told her a Blackberry, she went like, still? I showed her the Z10 and was very impressed. Blackberry was done in by incompetent management and the board. This is like HP and webos but unlike HP, BB does not have a secondary market where they can survive. Very stupid.

The board has sold out. They didn't botch anything, they are purposely driving the share price down to sell the valuable asset though highly suspect backroom deals. There is no way anything should be sold until the launch of BBMx is complete. The Google analytics for that launch exceeded many of Apples launches. The shareholders have every right to be very upset they are losing here.

You are probably right. I will buy it though. It seems very capable. I will use it until I decide where to go next. I can't believe a world of 6 billion people can only support 2 smart phone platforms. Too many sheep.

If BlackBerry is supposedly talking to these other companies about sale or partnership of the company, then the future looks bright for BlackBerry because they have options and I'm sure they will do what's best!..

Let me quote:
"(Reuters) - BlackBerry Ltd, on the block as its smartphone business struggles, is in talks with Cisco Systems, Google Inc and SAP about selling them all or parts of itself, several sources close to the matter said."

so if I rephrase :
1 BlackBerry is looking for solutions.
2 Among the solutions, are selling in parts, or selling in whole, or other solutions.
3 they have contacted Cisco, Google and SAP

BBM, at least, must break free before Google comes into the picture. Sorry, don't like the invasive nSature of the Goog. BB will be +'d into overload. Much rather see Amazon, Cisco, even Samsung, Microsoft or some other step in, really. Just my opinion. Guess you can tell I've had my fill of the Goog already ;-).

I'm not really saavy about this stuff, so take this with a grain of salt, but everyone seems to be saying 'why would google be interested?' . . well with apple close to getting in cars/etc I would imagine google wants to be there too, and if they acquired QNX wouldn't that seem to put them right there? I'm not saying I like the idea (actually I'd hate the idea), but I'm guessing it sounds like something they would be interested in.

No, Alicia, this doesn't come as a surprise. The Fairfax agreement was, from the beginning, a ruse to drum up interest in other parties to take a look at BlackBerry. To this day, it doesn't have financial backing.

Second, BlackBerry has asked for "preliminary expressions of interest". That's like someone asking you "Hey, wanna go out sometime?", not for your hand in marriage.

My prediction is Google will buy blackberry and have 3 different entities
-Google Black for governments and enterprise security
- Google Black Messenger which is bbm
- Google drive qnx infotainment system for cars

Here's hoping to get an official 10.2 before any of this takeover happens.. (which will further delay the update).. slow update is why android maker such as LG, Motorola (preGoogle) struggles to catch up with Samsung..

The fact that the Special Committee is attempting to maximise shareholder value by beating the bushes to find the highest price possible for the company (as they are legally bound to do) seems to be misunderstood.

In a month, either Fairfax will make an offer or we return to the status quo. The status quo simply means that BlackBerry remains a publicly traded company subject to a takeover by any interested party, at any time, moving forward.

Stoic, my issue with how they handled things is that they did not need to announce to the world that they were desperate to sell themselves. They should have put on a brave face and continued attempting to make their -- finally -- polished and outstanding OS and devices work in the market.

By publicly declaring that they had no confidence in their own management or their company's products, they: 1) cut off any option of continuing as a going concern because sales will never pick up now, and 2) took away leverage with third-party buyers that can sit by and watch BB implode with near certainty.

To me, the first of the above is most obvious. They panicked too early, or something else happened. Perhaps Heins had conflicting motives with his reward for selling the company.

I hadn't thought of Intel, but wouldn't that make sense? They have very little in the mobile game right now, and this would give them an in with the corporate market for mobile devices. Heck, Intel and a strong business player like SAP combined might work too.

If Google picked them up, then I think that might damage the reputation for security that BlackBerry now has. Google does a lot well, but security IMO not so much. I could only see them buying up blackberry for the patents, then shutting them down.

I can't think of a scenario where If BlackBerry were purchased it would continue. While everyone counts the value of patents, technology and talent... they forget BlackBerry's most valuable asset... an existing customer base that exceeds 70 million globally.

I bought Apple stock at $13/share because I couldn't believe 22 million customers would be abandoned (cir.1998). I have to believe something similar can be done here too. I just wish BlackBerry would loosen the "purse-strings" and spend some of that $2.6 Billion to do more than "tread water" till they drown :(

cdlaidlaw, I agree that they panicked too soon and did not invest enough in marketing their new products. I think many people believe that now.

It would have been risky, but they had to take the risk. Who knows how big a marketing budget they needed, but the only press they got were initial reviews (somewhat positive) and then relentless news on poor sales.

An Intel takeover would be VERY interesting. Intel have struggled to sell their chips into the mobile market. It would be an immediate win for them and they could probably also lower the overall handset manufacturing costs.

Z30 pricing and the break up of profitable assets it's all about the investors and shareholders from now on in. BB10 was a year too late. BBM should have been cross platform a year ago. Delays on BBM launch to Android and iOS can also be read in many ways. I'm still a fan but others I know are moving to Windows or Apple. Shame.

Samsung will be the best buyer because they wanted to have a pie of the server market and BES10 is just right there with good contracts with goverments, agencies and NATO and business. They could change the name or just keep it like Samsung BES or SES (blackberry away) and they can USE Blackberry 10 OS because android is also included in the OS like Tizen. Blackberry 10 will be have a name TIZEN 10 or SAMSUNG 10.

Blackberry 10 OS is allready more sold then andorid OS's and also the store is huge and that in 8 months is not bad. It has a base but people want to see straight away marketshare and 1M apps :). Android 1.5 is also coming from a long way to be 4.3 now. Blackberry 10 could be great for use with samsung mobile and for us people wanted to use a great OS but it will never be the same.

What also is good for samsung buy a license from blackberry to us BB10 and get some phones out there and push it. Let's say they pay 500.000M for 2 years just to support and to use blackberry. They also get 10% share of the business.

Google is tearing it apart , microsfoft and apple too. Sap is only intresting in server part and cisco will maybe wanted the OS for there own mobile but that is hard.

Dear BlackBerry, please don't shut down your services... i have campaigned against those horrible iphones and poor androids and shown your superiority compared to them ..... whatever you do, there are millions out there who wish blackberry was really strong at this point.

These phones are amazing. F u c k everyone who had ever said they aren't. I'm using this z10 until it blows up. It embarrasses everyone's phone that I know. But somehow people don't like it. Well eff em in the a.

Listen. Bottom line. There are going to be many suitors. The reason being is that, BB10 is the best OS out there. Not by a small margin, by a long stretch. Look at Android, years and its still weak. Apple? Hum, kind of basic, limited, flashy, but not much more than flash, really just all marketing, no meat. So hell yeah, money wants to buy BlackBerry.

I hope it is some partnership, Blackberry needs a big player to partner with.
BBM is valuable and I think the player is Samsung.. as BBM is already loaded on Samsung phones in some regions like Africa.. but yet they could not release BBM for Android a few days ago. Blackberry is playing us.. ;)

This, this is probably on of the key reasons why I hate the iShit brand as well. The most unfortunate and abhorrent thing is how blind the entire user base is and does not recognize that they are being milked for everything they got by a worthless charade of an ecosystem. Ecosystem of what? Shitty apps? Shitty speakers? Since when did tweaters and lossy compression become "audiophile grade".

I think if BlackBerry has come to the police of a sale & a sale in parts then the management has already thrown in their towels. Over the past few years, they have had the neck to do only the worst possible things that could have been done by them in any situation.

This I guess is one of it. I also understand that they are forced to do so as the pension funds of many Canadians depends on the performance of Blackberry's stock prices. This move is good for Canadians but not for the company and its users.

Had to be anyone I'd like it to be ms. They could kill off windows metro and pick up BlackBerry10. My windows 10 pc would be BlackBerry 11 essentially. Having a kick as$ BlackBerry 11 device aka windows phone 10 would also be awesome sauce.

"A camel is a horse designed by a committee" - Alec Iissigonis- One thing I have learned from the great leaders of the best companies in times past, is that they all despised committees. As -David Ogilvy- said, "search all your parks in all your cities, and you will find no statutes of committees. When I heard that not only a committee, but that a "special " committee had been put into place, I knew then that blackberry was finished. You think Jobs became great by answering to committees? How are they going to restructure and build back market share when a committee is seeking an opposing alternative strategy? It takes courage, a clear mind and great patience to rebuild, a committee with patience reserves more limited than that of wall street is of no use, they will just get in the way. Thorstien Heinz is being led into a dead end slaughter where failure is inevitable. If they sell to any of these companies, I'm leaving blackberry for good. I would have bought those other brands in the first place if I wanted them. I hate oligopolies, and I was hoping to avoid joining them, but I may soon have no choice. Did I mention that I hate committees?

A couple million blackberry phones sold and boom blackberry is back in the black and profitable. remember the industry minister and prime minister wishes blackberry to succeed.
So we have not heard the last of this, and the gov will act in the best interest of Canadians and IP. So I really wont be surprised if they step in, it is not a nationalistic move.. but support. Blackberry is not in very dire situation yet.

No they won't. They will just treat it like Nortel. Let it be chopped to pieces, all of the intellectual property lost, sold for pennies. A few people will walk away with a lot, the rest with nothing. That's what will happen. If I turn out to be wrong, I will issue a public apology on Crackberry as soon as this charade is over.

Hmmmmm, mabey Rogers knows something we don't. It doesn't make any sense why they decided not to stock the Z30? I thought they had the best partnership since day one? Could it be that their relationship is so great that BlackBerry tipped them off? Makes you wonder.

They need a big name to back them for enterprise. Of they sell off parts from bbos that they don't need or do a lease back, this would make sense. Even their server network can be sold and leased back. I think they are looking at increasing working capital.

Here we go...typical stupid Canada. why not just give the company away? Patents, intellectual property. Who cares how much Canadian initiative and intellectual Brain power went into it. We Canadians just love all stuff American and Korean. We are too stupid to buy products made in our own country and support our own. Oh no!! Buy Apple and Samsung products and keep all the brain dead auto jobs and blue collar jobs here. Yep, we are a real smart people us Canadians!!!!!

I agree, canadianas are stupid, they fall for nationalistic gimmicks from Rogers, Farirfax etc so they can profit from it. keep canadian jobs, keep it Canadian company but rogers will not sell Candian phones, and what do you think Fairfax will do.. ever saw wall street, the movie?

They could, but Microsoft, like BlackBerry is incredibly dumb and slow. Two lumbering giants. Microsoft is lucky to have such a massive foothold in the business arena with software, otherwise they, like BlackBerry, would be going the way of the dodo.

You are correct, liars and cheaters! We are all masochists, crap on me again BB...oooh, I think I'll go buy a 750.00$ phone, that won't be supported in 3 months. Hey, I like your phones, but come on...throw us a bone! Make an effort to run the company!............nevermind...

I am at the endpoint with BlackBerry. I bought several BlackBerry PlayBooks within the first six months of availability including the pre-ordered tablet. I bought a few BlackBerry smartphones including the BlackBerry Bold 9700 and BlackBerry Z10. BlackBerry PlayBook is no longer supported. BlackBerry Z10 is classified as an entry-level device according to BlackBerry management despite being its inaugural flagship BlackBerry 10 smartphone only a few months ago. These recent announcements are the last straw considering their message has been so confused of late...too many contradictory statements.

Then what, we'll have GGM+, no thanks. Damn near every time I sign into YouTube, they + me and I have to cruise through their maze to undo their move. Lot of other people getting pretty fed up with the Goog too, I can see why.

One thing not mentioned much is that in Canada we have laws that protect our Industries and large companies from excessive foreign ownership. All of the ideas floated here would all meet with government scrutiny and review at some point before being allowed to go through

Why BlackBerry why?? I fucking hate android and Samsung and I don't want the awesome features of BlackBerry 10 to run on those crappy android devices! But if BlackBerry sells some of their parts to Google or Samsung am gonna stick to my Z10 and later will buy the z30 and will be using it till it becomes unusable...i just love BB10 :(

Samsung mobiles look like cheap toys! BlackBerry looks the best among all and it means business! Z10 is the sexiest looking device on the planet next to The black HTC one, though I hate it since it runs crapdroid!

Have to agree, BB's devices are just solid, too bad they're possibly not staying in it long enough, as BB, to show what the people of BB can really do. Hopefully, the new leadership will give them the incentive, the funds, the marketing, the freedom they need to truly keep moving.

Wow so many opinions, here is my 2cents...I love my Z10 and I know BlackBerry is a Canadian company but if they can't market the products they provide properly then so be it get another company the can before it dies. I will continue to use my BlackBerry for as long as I can. I have had 1 Samsung Note,3 Iphones,but I have to honestly have to say the blackberry Z10 is much more interesting in every way #ichooseblackberry join my channel for all your animated BBM display pics C0002D710

Privacy has become such dream anymore that nobody even finds value in a secure network. One reason BlackBerry has lost value. Used to be people valued privacy but now they give it all away with fb and apps. What people don't give away the US government forces companys to hand it over. Leaves blackberry's security value message null and void. Its a sad day to be honest.

The U.S.A conception of the privacy ... a thought which serves the traders. People have to be at the disposal of the storekeepers. An American victory.
European, in an already prepared, bought environment or silly enthusiastic, I attend a victory which is going to decrease my rights.

I can never understand where the board is trying to take this company. One minute we hear they are going private to get out of the public eye and will continue to make consumer and enterprise hardware and the next minute I hear they are willing to sell themselves to companies that just want to cut them up into pieces anyway. If they were gonna get rid of the NOC I could not really understand what real value is left in the company.

As a stock holder this may end up being better as the price may increase, I look forward to what Chris has to say about this. I had come to terms with the loss I would take with BlackBerry being private and moving forward, now that may change.

There is some interesting names included here and maybe one can keep things moving but it does come across as more of a sale of parts not the whole. This would be worst case for me as a BlackBerry user who enjoys BB10. Although there is no idea knowing what will happen so that's where I will stop with the speculation.

what do they mean by selling off their portfolio if successful and what does this mean for the Blackberry customers? Could someone enlighten me on what this all means, thanks. All of those that blackberry are in talks with are good companies and well known, but it seem they are forgetting about the customers and what all these plans means for us.

I hate BlackBerry as if they part it out then this would be stupid as there will be nothing left.

If Google or Samsung took BlackBerry all we would see is newer android phones and no BlackBerry devices anymore, but we would see the enterprise sector move to to either company that takes and still use BlackBerry Enterprise secure servers.

Geez! First WebOS now BB10! This sucks! This just reminds me of Nortel all over again. I was so naive to think BlackBerry was actually going to come out of this unscathed. This is a dark day for Canadian tech.

Nortel screwed up initially because they were out of date similar to BlackBerry, but they pit the nail in their own coffin when their managers started manipulating the accounting numbers and giving themselves massive bonuses. The latter isn't apparent in BlackBerry. Therefore, it is not comparable to Nortel.

Yes, and two Germans at the "Helmut", although Thor did become CDN. He was in at the decline of a sinking ship which he and other top managers are running to the ground! I would take my stock losses and go with Prem Watsa and Fairfax to give the great OS 10 a chance against all of the past mismanaged deals and plans and bad press! I think Thor surrounded himself with poor marketing and execution!

This is why I will not be rushing out to by the z30 anytime soon. ANYONE that feels the need go do so. I will take the wait and see approach. Things are getting more interesting by the hour with BBRY. Just my two cents. Btw I love my 4 z10's! Att USA. Have a good day everyone.

people who say the buyers of BlackBerry will shut BB10 or BBOS down don't understand that BlackBerry has contractual obligations any company that buys BlackBerry will have to honour the services or pay for damages, estimated costs are in the billions.

Those don't include making any new phones, or even doing dev work of BBOS or BB10, beyond possibility security-related bug-fixes for a period of time. Yes, they also have to support the hardware for a given amount of time too; probably 3 years from the date of the device's release, but that wouldn't stop a company from killing the product.

There are plenty of examples. Look at what HP did, with both Palm and their WebOS tablet. Look at Nokia with Meego.

Sadly only LG will keep the BB10 OS as they don't sell as many Android phones as Samsung and Motorola. They can break that decline with some kick ass hardware for cheap and better marketing than what BBRY is doing currently

No member of the Android Alliance could offer BB10 unless they left the Android Alliance and stopped selling official Android. That's part of the Android Alliance agreement (BB10 contains parts of a non-Google-certified Android, which makes it prohibited for any member of the Android Alliance to put on their phones).

So, anyone hoping that an existing Android manufacturer is going to offer BB10 would have to believe that that company was willing to give up their Android business for the BB10 business. Think that through for a minute...

Fairfax is a distress sale. Not going to happen at that price if there are other buyers. If you care so much for Blackberry being Canadian then may be start with convincing everyone around you to dump their droids and iGarbage and buy Blackberry devices.

My thoughts exactly. Samsung has the most to benefit from the acquisition. They could take so many of the features from BB and make it exclusive for Samsung phones. Hub is the best email and messaging system by any OS. They can incorporate that into android. Also, BB Balance is something Samsung would like. Samsung has the money and resources to make cheap and secure phones for corporations and governments with the reliability of BB services (BES, BBM, etc).

And what other Canadian cell phone will you use? Maybe someone in newfoundland will create the newfie phone. Just joking with you I also want to see it stay Canadian but what can you do in this global economy. Hoping for the best meanwhile I'm a happy customer with my z10)